EUR/JPY: Go long at 115, targets 130 – Societe General

Macro Strategist Kit Juckes at Societe General offers outlook on the EUR/JPY cross heading into the French elections.

Key Quotes:

“The bounce in USD/JPY has allowed EUR/JPY to bounce off 120. We would really, really like to get EURJPY longs in place at 115, between now and the French election, with a target around 130. Bloomberg have started tracking betting on for the main candidates in the French election and the trend, a the moment, is for Marine Le Pen to improve while Emmanuel Macron, her main challenger, marks time (albeit with a significant lead).”

“EUR/USD peaked at about the same time as that lead peaked and with protests in the French suburbs this weekend, the risk of continued nervousness seems pretty clear. We'd still, in general, like to get long Euros closer to the vote and at cheaper levels. This week, we get ECB ‘Minutes', Q4 GDP data, and fresh economic forecasts.”